Tax Returns are Driving me Crazy?

Question

My parents are married and have always lived together. For the 2007 fiscal year, both of my parents messed up; my mom filed a Head of Household while my dad filed as Single. I looked this up a bit and found out that a Form 1040X has to be done.BTW my mom's income is 13000 and my dad's is 2000. Also,no amount need to be changed, just the filling status. Also, I need this so I can get Financial Aid from UCSB. BUT

1. Do both of my parents need to file this 1040X?

2. Do I need a Prepaid Preparer, or can I help my parents do it themselves?

3. The 1040X asks me for a explanation, but what to put in order to not get in trouble, unless I put that my parents are uneducated and that their paid preparers weren't of much help?

4. Would my parents be fined for these corrections?

5. Any other things I should be aware of before going through this process?

Thank.

Answer 1

1.Yes they both should file a 1040X

2.The 1040X is relatively simple so you should be able to do it yourself and save the expense of paying someone to do TWO amended returns.

3. Simply say that the returns were filedwwrong that it should be married filing a joint return.

4. There should be no fine as it was a mistake that you are correcting.

5.One thing that you can do is go online to maybe Taxact and fill out a tax return (but DO NOT SUBMIT) like it should have been from the beginning to get the totals to make sure that you have the 1040x filled out correctly.

You have to send in a copy of the original returns along with W2's and the 1040x. Send them all in one envelope so that you can be sure they are processed together. It would not hurt to explain in a note attached to the front. of the returns.

I have done taxes for about 10 years and I have 2 sons in college and I know the hassel so if I can be of any assistance feel free to email me any questions if you get stuck. I check my email every morning before classes.

Answer 2

Oh right, they carefully filed separately, used invalid filing statuses and I'm willing to bet your mom filed for EIC.

Unless your parents are estranged and living apart (doubtful), your mom filed in error.  Your mom's return can be fixed by filing as MFS and paying the EIC back or filing MFJ with your dad.

Your dad's return can be fixed by filing as MFS (probably the same tax bill) or filing as MFJ with your mom.

If they choose to merge the return, you pick your mom's return and you amend just it.   (The process of amending into an MFJ return will zero out the other return.)

The sanest way to merge the returns--dummy up a 1040A (just don't send it in).  Fill in column A with mom's data; fill in column C with MFJ data; manually calculate column B one line at a time.  (A + B = C)

Answer 3

Just based upon your first sentence of your question, your parents file false tax returns.  They better read that statement above their signatures on their tax forms.  I hope your parents get in trouble they deserve it.

Answer 4

Both parents need to file.

They screwed it up the first time. Get a pro.

Explanation:  We screwed up and want to fix it.

Fine:  At their income level, there is probably no tax consequence so no.

Tell them not to do it again.

Answer 5

They'd file ONE amended return to change to a joint return, which would be best for them, but show both ss#'s.  They'll both have to sign the amended return.

You can most likely do it yourselves.  If you go to a paid preparer, I'd stay away from the one who screwed it up in the first place.

Explanation on the 1040X:  that original returns were filed with wrong filing status, and this amendment is correcting that to file a joint return.  That's enough to say.

Your parents aren't going to be in trouble, or be fined, for this - they wouldn't have owed taxes on the original filings, and won't owe taxes once it's corrected.